Emerging economies like India face the dual challenge of rapid industrialization and significant environmental degradation. The traditional linear economic model, characterized by a “take, make, dispose” paradigm, is increasingly unsustainable, prompting a global shift toward circular economy (CE) practices. This paper investigates the barriers to sustainable development in India by examining regulatory, economic, technological, and socio-cultural challenges that hinder CE integration. Utilizing a mixed‐methods research design, the study synthesizes quantitative data-including meta-analyses of key sustainability metrics-with qualitative insights obtained from case studies and stakeholder interviews. Findings indicate that while CE practices can lead to improved resource efficiency, waste reduction, and lower greenhouse gas emissions, their potential is curtailed by fragmented policy frameworks, high upfront capital requirements, limited technological adoption, and low public awareness. Based on these insights, the paper proposes policy reforms, targeted economic incentives, and innovative technological solutions to facilitate the widespread adoption of CE practices. The research contributes novel scientific insights by contextualizing the barriers in the Indian setting and offering actionable strategies that address the unique challenges of emerging economies. Ultimately, this work demonstrates that overcoming these barriers is essential for a sustainable economic transition in India and provides a replicable framework for integrating CE practices into broader sustainability operations.